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Thursday, November 29, 2012

Advanced Micro Devices, Inc. (NYSE:AMD) Shares Up 11% In The Past One Week

Shares of Advanced
Micro Devices, Inc.(NYSE:AMD) have rebounded about 11% in the past one week
with the stock gaining 6% in today’s session. However, the stock is still down
61% so far this year.

Advanced Micro Device
plans on selling the leasing back its campus in Texas so as to raise finances
and fund its chipmaking business as it expands outside the struggling PC
industry into new horizons.

AMD wishes to sell the
58-acre spot for an amount ranging from $150 million and $200 million. It also
expects to close an agreement in the second quarter, as told by Drew Prairie, a
spokesman of AMD, to Reuters on Tuesday.

The move taken by AMD
to sell its campus was reported earlier by the Austin American Statesman. This
comes as the company and its bigger competitor, Intel fight with slackening PC
sales.

Prairie said that there
happens to be favorable economic conditions in the part of Austin, Texas, where
the campus is located. Dependent on finding a shareholder, who is willing to do
a multiyear lease-back, it seems to be a good chance for AMD to release the
value of the real estate to finance operations.

Headquarters of the
company in Sunnyvale, California and a building located near Toronto were sold
and leased back in the past, as mentioned by Prairie.

The growing popularity
of the iPad and other tablets has hurt the demand for PCs. With economic growth
of China slowing, Europe’s economy vacillating and US’s economic moderate
recovery, international shipments are predicted to decline to some extent this
year.

AMD is one of Silicon
Valley’s oldest chipmakers. It has been laying off engineers and looking for
new markets for its chips as it experiences diminishing cash reserves.

Chief Executive of AMD,
Rory Read said to shareholders in a conference held in Scottsdale that results
of the US Thanksgiving weekend seem hopeful for PC sales even though it is too
early to make estimations about the overall shopping season.

Read said that there
has been some optimistic news out of Black Friday over the past few days. AMD
has performed convincingly well over the period.